Rental values grow across all tracked cities in past few quarters

In the past, the City Union Bank has reported growth rates better than that of the industry; in the third quarter of 2012-13, it has managed to repeat the performance.MUMBAI: The PropIndex report by Magicbricks.com released on Thursday shows that rental markets take the lead as capital values stay subdued. Rental values grew across all tracked cities in spite of a slow real estate market in the past few quarters. This trend was reflected in the latest edition of the PropIndex (Jan-Mar 2015), wherein rental markets across the country remained robust as compared to capital values.

''Rental markets in the western part of the country were particularly upbeat with more than 80 per cent of the localities in each of the tracked cities posting a rise in rental values. These cities included Mumbai, Pune and Ahmedabad,’’ it said.

Even cities of the North and South recorded a positive rental market with increased demand for localities near commercial hubs. IT driven pockets in cities such as Pune, Gurgaon, Noida and Hyderabad continued to post increasing rental values (3-11%). In cities such as Mumbai, Bangalore, Chennai and Delhi premium areas saw an increase in rental values (5-8%).

A whopping 92 per cent of the tracked localities posted a positive trend in rental values in Mumbai. Areas well connected to the BKC and premium locations saw increasing rental values. Ghodbunder Road and Parel recorded the highest rise of 9 per cent while Bandra West, Andheri East and West posted a rise of 6-8 per cent.

In Pune, the city posted a rise in rental values in almost 80 per cent of the tracked localities. Localities in the East recorded the maximum rise of 3-9 per cent in values. These included locations such as Kharadi, Hadapsar, Magarpatta, Wanowrie etc.